FALSE0001286139954 Villa StreetMountain ViewCalifornia00012861392025-02-262025-02-26

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
____________________
FORM 8-K
____________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 26, 2025
____________________
LegalZoom.com, Inc.
(Exact name of Registrant as Specified in Its Charter)
____________________
Delaware001-3561895-4752856
(State or Other Jurisdiction
of Incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
954 Villa Street,
Mountain View, California
94041
(Address of Principal Executive Offices)(Zip Code)
Registrant’s Telephone Number, Including Area Code: (323) 962-8600
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
____________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class  
Trading
Symbol(s)
Name of each exchange
on which registered
Common Stock, par value $0.001 per shareLZThe Nasdaq Global Select Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02 Results of Operations and Financial Condition.
On February 26, 2025, LegalZoom.com, Inc. (“LegalZoom”) issued a press release announcing its results of operations for the three months and year ended December 31, 2024. A copy of that press release is furnished as Exhibit 99.1 to this report.
The information furnished pursuant to Item 2.02 of this report, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, unless LegalZoom specifically states that the information is to be considered “filed” under the Exchange Act or incorporates it by reference into a filing under the Securities Act of 1933, as amended, or the Exchange Act.
Item 7.01 Regulation FD Disclosure.
Also on February 26, 2025, LegalZoom updated its investor presentation and supplemental financial report, which contain financial results and related information regarding LegalZoom. The investor presentation and supplemental financial report are available on the LegalZoom Investor Relations website at https://investors.legalzoom.com.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit
Number
Description
104Cover Page Interactive Data File (embedded within the Inline XBRL document).


2

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
LegalZoom.com, Inc.
Date: February 26, 2025
By:/s/ Noel Watson
Noel Watson
Chief Financial Officer
3

Exhibit 99.1
lz_logoxblackxnopaddinga.jpg
LegalZoom Reports Fourth Quarter and Full Year 2024 Financial Results; Announces 2025 Guidance of 5% Revenue Growth and Expanding Margins
•Continued strong execution with Q4 and full year 2024 financial results at high end of outlook range
•Ongoing progress towards initiatives to grow subscription business; full-year subscription revenue of $436.2 million up 6% year-over-year
•Full-year net income of $30.0 million, up 115% year-over-year, and net income margin of 4%
•Full year Adjusted EBITDA of $148.1 million, up 25% year-over-year, and Adjusted EBITDA margin of 22%, reflecting approximately 380 basis point expansion in Adjusted EBITDA margin
•$142.1 million of cash and cash equivalents and no debt outstanding as of December 31, 2024
•Subsequent to year end, announced the acquisition of Formation Nation to support growth strategy
MOUNTAIN VIEW, California – February 26, 2025 – LegalZoom.com, Inc. (Nasdaq: LZ), a leading online platform for legal services, today announced results for its fourth quarter and year ended December 31, 2024.
“We are making solid progress against our goal to position LegalZoom for long-term, sustainable growth,” said Jeff Stibel, Chairman and Chief Executive Officer of LegalZoom. “Our execution in 2025 includes a narrowed focus on our core legal and compliance competencies, quality customer acquisition, and a continued emphasis on prioritizing recurring subscription revenue. Our efforts will be supported by driving greater brand awareness, providing best-in-class service, weaving expertise through our products, and pricing for the value we provide.”

Noel Watson, LegalZoom’s Chief Operating Officer and Chief Financial Officer said, “LegalZoom demonstrated strong execution in the fourth quarter with results at or above the high-end of our outlook. In 2025, we remain committed to accelerating subscription revenue growth and expect to exit the year with a double-digit increase in subscription revenue while driving continued operating efficiencies and delivering a strong margin profile.”

Fourth Quarter 2024 Highlights

•Revenue was $161.7 million for the quarter, up 2% year-over-year.
◦Transaction revenue was $53.0 million for the quarter, compared to $51.9 million in the same period in 2023, up 2% year-over-year.
◦Subscription revenue was $108.7 million for the quarter, compared to $106.7 million in the same period in 2023, up 2% year-over-year. The increase was driven by the addition of 0.2 million net new subscription units during the trailing twelve months.
•Gross margin was 67% for the quarter compared to 65% in the same period in 2023.
•Net income was $12.9 million for the quarter, or 8% of revenue, compared to $7.4 million, or 5% of revenue, in the same period in 2023.
•Adjusted EBITDA was $44.2 million for the quarter, or 27% of revenue, compared to $33.4 million, or 21% of revenue, for the same period in 2023.
•Non-GAAP net income was $32.6 million for the quarter compared to $24.1 million in the same period in 2023.
•Cash and cash equivalents were $142.1 million as of December 31, 2024 compared to $225.7 million as of December 31, 2023.
•Cash flows provided by operating activities were $42.6 million for the quarter ended December 31, 2024 compared to $22.5 million in the same period in 2023.
•Free cash flow was $35.9 million for the quarter ended December 31, 2024 compared to $14.1 million in the same period in 2023.
•Basic and diluted net income per share was $0.07 for the quarter compared to a basic and diluted net income per share of $0.04 for the same period in 2023. Basic and diluted Non-GAAP net income


per share was $0.19 for the quarter in 2024 compared to basic and diluted Non-GAAP net income per share of $0.13 for the same period in 2023.
•Subsequent to the end of the quarter, on February 10, 2025, LegalZoom announced the acquisition of Formation Nation, Inc., a small business services company. The acquisition supports LegalZoom’s growth initiatives and, inclusive of synergies, is expected to positively contribute to Adjusted EBITDA and be accretive to Non-GAAP net income per share in the first year of the acquisition.
Key Business Metrics and Non-GAAP Financial Measures
(Unaudited, in thousands except AOV, ARPU and percentages)
 Three Months Ended% GrowthYear Ended% Growth
December 31,(Decline)December 31,(Decline)
 20242023YOY20242023YOY
Total revenue$161,706 $158,663 2 %$681,881 $660,727 3 %
Transaction revenue$52,959 $51,923 2 %$245,692 $247,780 (1)%
Subscription revenue$108,747 $106,740 2 %$436,189 $412,947 6 %
Gross Profit$108,321 $102,756 5 %441,788 421,464 5 %
Gross Margin67 %65 %3 %65 %64 %2 %
Net Income$12,854 $7,382 74 %$29,963 $13,953 115 %
Net income margin8 %5 %60 %4 %2 %100 %
Net Income per share — basic:$0.07 $0.04 75 %$0.17 $0.07 143 %
Net Income per share — diluted:$0.07 $0.04 75 %$0.16 $0.07 129 %
Net cash provided by operating activities$42,586 $22,495 89 %135,639 124,308 9 %
Non-GAAP Financial Measures
Non-GAAP net income$32,598 $24,134 35 %$99,451 $80,475 24 %
Non-GAAP net income per share — basic:$0.19 $0.13 46 %$0.55 $0.42 31 %
Non-GAAP net income per share — diluted:$0.19 $0.13 46 %$0.54 $0.41 32 %
Adjusted EBITDA$44,204 $33,438 32 %$148,114 $118,691 25 %
Adjusted EBITDA margin27 %21 %29 %22 %18 %22 %
Free cash flow$35,879 $14,121 154 %$99,943 $92,715 8 %
Key Business Metrics
Transaction units241 215 12 %1,123 1,043 8 %
Business formations96 113 (15)%482 581 (17)%
Average order value (AOV)$220 $242 (9)%$219 $238 (8)%
Subscription units at period end1,766 1,545 14 %1,766 1,545 14 %
Average revenue per subscription unit (ARPU) at period end$263 $277 (5)%$263 $277 (5)%
Certain percentages may not recalculate due to rounding.
Financial Guidance and Outlook
Our guidance for the first quarter ending March 31, 2025 is as follows:
•Revenue is expected to be in the range of $175 million to $179 million
•Adjusted EBITDA is expected to be in the range of $33 million to $36 million


Our guidance for the full year ending December 31, 2025 is as follows:
•Revenue growth of approximately 5% year-over-year
•Adjusted EBITDA margin of approximately 23%
Webcast and Conference Call Information
A webcast and conference call to discuss fourth quarter and full year 2024 results is scheduled for today, February 26, 2025, at 4:30 p.m. Eastern time/1:30 p.m. Pacific time. Those interested in participating in the conference call are invited to register Here.
A live audio webcast of the event will be available on the LegalZoom Investor Relations website: https://investors.legalzoom.com. An archived replay of the webcast also will be available shortly after the live event.
Forward-Looking Statements
This press release contains forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts contained in this press release may be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “forecasts,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions. Forward-looking statements contained in this press release include, but are not limited to, statements regarding our quarterly and annual guidance.
The forward-looking statements in this press release are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to the following: our dependence on business formations; our dependence on customers expanding the use of our platform, including converting our transactional customers to subscribers and our subscribers renewing their subscriptions with us; the impact of macroeconomic challenges or uncertainty on our business; our ability to sustain our revenue growth rate and remain profitable in the future; our ability to provide high-quality products and services, customer care and customer experience; our ability to continue to innovate and provide a platform that is useful to our customers and that meets our customers’ expectations; the competitive legal solutions market; our dependence on our brand and reputation; our ability to maintain and expand strategic relationships with third parties; our ability to hire and retain top talent and motivate our employees; our ability to effectively integrate Formation Nation, Inc. into our existing operations; risks and costs associated with complex and evolving laws and regulations; our ability to maintain effective in our internal control over financial reporting; and any factors discussed in the section titled “Risk Factors” included in our Quarterly Report on Form 10-Q for the three months ended September 30, 2024 filed with the Securities and Exchange Commission, or SEC, on November 6, 2024, as well as any factors in our subsequent filings with the SEC. The forward-looking statements in this press release are based upon information available to us as of the date of this press release, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.
You should read this press release with the understanding that our actual future results, levels of activity, performance and achievements may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained in this press release, whether as a result of any new information, future events or otherwise.
About Non-GAAP Financial Measures
This press release includes non-GAAP financial measures including Adjusted EBITDA, Adjusted EBITDA margin, Non-GAAP net income, Non-GAAP net income margin, Non-GAAP net income per share and Free cash flow. To supplement our unaudited condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States, or GAAP, we use certain non-GAAP financial measures, as described below, to understand and evaluate our core operating performance. These non-GAAP financial measures, which may be different from similarly titled measures used by other companies, are presented to enhance investors’ overall understanding of our financial performance and liquidity and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. We believe that these non-GAAP financial measures provide useful


information about our financial performance and liquidity, enhance the overall understanding of our past performance and future prospects and allow for greater transparency with respect to important measures used by our management for financial and operational decision-making. We are presenting these non-GAAP measures to assist investors in seeing our financial performance using a management view and because we believe that these measures provide an additional tool for investors to use in comparing our core financial performance over multiple periods with other companies in our industry.
We define Adjusted EBITDA as net income (loss) adjusted to exclude interest expense, interest income, provision for (benefit from) income taxes, depreciation and amortization, other expense (income), net, stock-based compensation, impairment of other equity securities, impairment of long-lived assets, restructuring expenses, transaction-related expenses and certain other non-recurring income and expenses from time to time. Our Adjusted EBITDA financial measure differs from GAAP in that it excludes certain items of income and expense. We define Adjusted EBITDA margin as Adjusted EBITDA as a percentage of revenue.
Adjusted EBITDA is one of the primary performance measures used by our management and our board of directors to understand and evaluate our financial performance and operating trends, including period-to-period comparisons, prepare and approve our annual budget, develop short and long-term operational plans and determine appropriate compensation plans for our employees. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our results of operations in the same manner as our management team and board of directors. In assessing our performance, we exclude certain expenses that we believe are not comparable period over period or that we believe are not indicative of our underlying operating performance. Adjusted EBITDA should not be considered in isolation of, or as an alternative to, measures prepared and presented in accordance with GAAP. There are a number of limitations related to the use of Adjusted EBITDA rather than net income (loss), which is the nearest GAAP equivalent of Adjusted EBITDA. Some of these limitations include that the non-GAAP financial measure:
•may be calculated differently by other companies in our industry, limiting its usefulness as a comparative measure;
•does not reflect our capital expenditures, future requirements for capital expenditures or contractual commitments;
•excludes depreciation and amortization and, although these are non-cash expenses, the assets being depreciated may be replaced in the future;
•does not reflect changes in, or cash requirements for, our working capital needs;
•excludes stock-based compensation expense, which has been, and will continue to be, a significant recurring expense for our business and an important part of our compensation strategy; and
•does not reflect certain other expenses that we do not consider representative of our underlying operating performance, but that reduce cash available to us.
We define Non-GAAP net income as net income (loss) adjusted to exclude amortization of acquired intangible assets, stock-based compensation expense, certain transaction-related expenses, and certain other non-recurring income and expenses from time to time, net of related income tax impacts. Our Non-GAAP net income financial measure differs from GAAP in that it excludes certain items of income and expense. We define Net income (loss) margin as net loss as a percentage of revenue. We define Non-GAAP net income (loss) margin as Non-GAAP net income (loss) as a percentage of revenue. We define Non-GAAP net income (loss) per share as Non-GAAP net income (loss) divided by basic and diluted weighted-average shares. We believe Non-GAAP net income (loss) and Non-GAAP net income (loss) per share are operating performance measures that provide investors and analysts with useful supplemental information about the financial performance of our business.
Free cash flow is a liquidity measure used by management in evaluating the cash generated by our operations after purchases of property and equipment including capitalized internal-use software. We consider Free cash flow to be an important measure because it provides useful information to management and investors about the amount of cash generated by our business that can be used for strategic opportunities, including investing in our business and strengthening our balance sheet. Once our business needs and obligations are met, cash can be used to maintain a strong balance sheet and invest in future growth. The usefulness of Free cash flow as an analytical tool has limitations because it excludes certain items that are settled in cash, does not represent residual cash flow available for discretionary expenses, does not reflect our future contractual commitments, and may be calculated differently by other companies in our industry. Accordingly, it should not be considered in isolation or as a substitute for analysis of other GAAP financial measures, such as net cash used in or provided by operating activities.
We are not providing a reconciliation for our non-GAAP outlook on a forward-looking basis (including the information under “Financial Guidance and Outlook” above), as we are unable to provide a meaningful


calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing or amount of various items that would impact the most directly comparable forward-looking GAAP financial measure that have not yet occurred, are out of LegalZoom’s control and/or cannot be reasonably predicted. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.
The tables in this press release contain more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures.
LegalZoom
LegalZoom is a leading online platform for legal services, transforming how individuals and small businesses navigate the legal system. By combining intuitive technology with access to experienced attorneys—whether through our vast independent attorney network or LegalZoom Legal Services (LZLS) law firm—we offer the tools and guidance people need to confidently manage everything from business formation and compliance to estate planning and ongoing legal support.
With over two decades of experience and millions of customers served, LegalZoom helps individuals and small businesses navigate legal needs with confidence. For more information, please visit www.legalzoom.com.
Contact
Investor Relations
investor@legalzoom.com


LegalZoom.com, Inc.
Unaudited Condensed Consolidated Balance Sheets
(In thousands, except par values)
December 31,
20242023
Assets
Current assets:
Cash and cash equivalents$142,064 $225,719 
Accounts receivable, net of allowances of $2,121 and $4,906, respectively 8,511 11,738 
Prepaid expenses and other current assets17,926 15,159 
Current assets held for sale22,722 22,722 
Total current assets191,223 275,338 
Property and equipment, net59,788 48,232 
Goodwill63,318 63,318 
Intangible assets, net8,653 13,735 
Operating lease right-of-use assets7,189 8,518 
Deferred income taxes34,696 29,015 
Available-for-sale debt security (amortized cost of $848 and $836)1,377 1,159 
Other assets7,639 8,503 
Total assets$373,883 $447,818 
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable$31,150 $32,282 
Accrued expenses and other current liabilities57,928 61,678 
Deferred revenue174,643 167,951 
Operating lease liabilities1,861 2,052 
Total current liabilities265,582 263,963 
Operating lease liabilities, non-current6,018 6,966 
Deferred revenue381 490 
Other liabilities8,645 7,565 
Total liabilities280,626 278,984 
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value 100,000 shares authorized at December 31, 2024 and 2023, none issued or outstanding at December 31, 2024 and 2023— — 
Common stock, $0.001 par value; 1,000,000 and 1,000,000 shares authorized; 173,619 and 188,538 shares issued and outstanding at December 31, 2024 and 2023, respectively175 189 
Additional paid-in capital1,161,538 1,101,474 
Accumulated deficit(1,069,317)(933,061)
Accumulated other comprehensive income861 232 
Total stockholders’ equity 93,257 168,834 
Total liabilities and stockholders’ equity $373,883 $447,818 



LegalZoom.com, Inc.
Unaudited Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
 Three months ended December 31,Twelve months ended December 31,
2024202320242023
Revenue$161,706 $158,663 $681,881 $660,727 
Cost of revenue53,385 55,907 240,093 239,263 
Gross profit108,321 102,756 441,788 421,464 
Operating expenses:
Sales and marketing47,514 46,126 207,684 210,872 
Technology and development16,650 22,107 89,584 83,181 
General and administrative31,046 27,669 108,939 106,352 
Total operating expenses95,210 95,902 406,207 400,405 
Income from operations13,111 6,854 35,581 21,059 
Interest expense(201)(254)(446)(493)
Interest income1,303 2,711 7,850 9,307 
Other (expense) income, net
(1,747)1,185 98 1,621 
Income before income taxes 12,466 10,496 43,083 31,494 
(Benefit from) provision for income taxes
(388)3,114 13,120 17,541 
Net income$12,854 $7,382 $29,963 $13,953 
Net income per share:
Basic$0.07 $0.04 $0.17 $0.07 
Diluted$0.07 $0.04 $0.16 $0.07 
Weighted-average shares used to compute net income per share:
Basic173,239 188,223 180,210 190,466 
Diluted175,393 192,827 182,865 194,415 


LegalZoom.com, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(In thousands)
Year Ended December 31,
20242023
Cash flows from operating activities
Net income$29,963 $13,953 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization34,927 25,383 
Amortization of debt issuance costs227 227 
Amortization of right-of-use assets2,132 2,692 
Stock-based compensation71,510 66,015 
Deferred income taxes(4,552)4,712 
Change in fair value of contingent consideration— (836)
Unrealized foreign exchange loss (gain)648 (1,387)
Other— (39)
Changes in operating assets and liabilities, net of effects of business combination:
Accounts receivable3,227 1,441 
Prepaid expenses and other current assets(2,775)1,557 
Other assets707 435 
Accounts payable(817)5,025 
Accrued expenses and other liabilities(4,156)4,119 
Operating lease liabilities(1,942)(2,319)
Income tax payable(44)(4)
Deferred revenue6,584 3,334 
Net cash provided by operating activities135,639 124,308 
Cash flows from investing activities
Purchase of property and equipment(35,696)(31,593)
Other— 38 
Net cash used in investing activities(35,696)(31,555)
Cash flows from financing activities
Repayment of finance lease obligations(25)(35)
Repurchase and retirement of shares(165,014)(54,873)
Payment of stock repurchase costs(169)(100)
Shares surrendered for settlement of minimum statutory tax withholding(20,491)(9,587)
Proceeds from issuance of stock under employee stock plans2,414 8,445 
Net cash used in financing activities(183,285)(56,150)
Effect of exchange rate changes on cash and cash equivalents(313)34 
Net (decrease) increase in cash and cash equivalents
(83,655)36,637 
Cash and cash equivalents, at beginning of the period225,719 189,082 
Cash and cash equivalents, at end of the period$142,064$225,719
Adjusted EBITDA and Adjusted EBITDA Margin
The following table presents a reconciliation of net income to Adjusted EBITDA for each of the periods indicated (unaudited):
 Three months ended December 31,Twelve months ended December 31,
2024202320242023
 
(in thousands, except percentages)
Reconciliation of net income to Adjusted EBITDA
Net income$12,854 $7,382 $29,963 $13,953 
Interest expense201 254 446 493 
Interest income(1,303)(2,711)(7,850)(9,307)
(Benefit from) provision for income taxes
(388)3,114 13,120 17,541 
Depreciation and amortization9,636 7,322 34,927 25,383 
Other expense (income), net
1,747 (1,185)(98)(1,621)
Stock-based compensation22,024 15,010 71,510 66,015 
Restructuring costs(1)
(567)3,863 6,096 4,666 
Certain non-recurring expenses(2)
— 389 — 1,568 
Adjusted EBITDA$44,204 $33,438 $148,114 $118,691 
Net income margin8 %5 %4 %2 %
Adjusted EBITDA margin27 %21 %22 %18 %
(1)     For 2024, restructuring costs related to the reduction of our global workforce. For 2023, restructuring costs related to the reduction of our U.S. and U.K. headcount. Restructuring expenses include salary and benefits for the impacted employees and are included in general and administrative expenses in the accompanying consolidated statements of operations appearing elsewhere in the Annual Report on Form 10-K.
(2)    Certain non-recurring expenses included costs incurred by us in conjunction with secondary offerings of shares of our common stock by a selling stockholder in September 2023 and November 2023.

Non-GAAP Net Income, Non-GAAP Net Income Margin and diluted Non-GAAP Net Income Per Share
The following table presents a reconciliation of net income to Non-GAAP net income for each of the periods indicated (unaudited):
Three months ended December 31,Twelve months ended December 31,
2024202320242023
(in thousands, except per share amounts)
Reconciliation of Net income to Non-GAAP Net income
Net income$12,854 $7,382 $29,963 $13,953 
Amortization of acquired intangible assets1,266 1,291 5,082 5,165 
Stock-based compensation$22,024 $15,010 $71,510 $66,015 
Restructuring expenses(1)
(567)3,863 6,096 4,666 
Certain non-recurring expenses(2)
— 389 — 1,568 
Income tax effects(3)
(2,979)(3,801)(13,200)(10,892)
Non-GAAP net income32,598 24,134 99,451 80,475 
Net income margin8 %5 %4 %2 %
Non-GAAP net income margin20 %15 %15 %12 %
Net income per share—basic$0.07 $0.04 $0.17 $0.07 
Net income per share— diluted$0.07 $0.04 $0.16 $0.07 
Non-GAAP net income per share—basic$0.19 $0.13 $0.55 $0.42 
Non-GAAP net income per share—diluted$0.19 $0.13 $0.54 $0.41 
Weighted-average shares used to compute net income per share—basic173,239 188,223 180,210 190,466 
Weighted-average shares used to compute net income per share—diluted175,393 192,827 182,865 194,415 
Weighted-average shares used to compute Non-GAAP net income per share—basic173,239 188,223 180,210 190,466 
Weighted-average shares used to compute Non-GAAP net income per share—diluted175,393 192,827 182,865 194,415 
(1)For 2024, restructuring costs related to the reduction of our global workforce. For 2023, restructuring costs related to the reduction of our U.S. and U.K. headcount. Restructuring expenses include salary and benefits for the impacted employees and are included in general and administrative expenses in the accompanying consolidated statements of operations appearing elsewhere in the Annual Report on Form 10-K.
(2)Certain non-recurring expenses included costs incurred by us in conjunction with secondary offerings of shares of our common stock by a selling stockholder in September 2023 and November 2023.
(3)The estimated income tax effect of the non-GAAP pre-tax adjustments is determined by applying the statutory rate of the originating jurisdiction, if applicable.


The following table shows the computation of basic and diluted Non-GAAP net income per share (unaudited):
Three months ended December 31,Twelve months ended December 31,
2024202320242023
(in thousands, except per share amounts)
Non-GAAP net income and Non-GAAP net income per share:
Non-GAAP net income$32,598 $24,134 $99,451 $80,475 
Reconciliation of denominator for net income per share to Non-GAAP net income per share:
Weighted-average shares used to compute net income per share—basic:173,239 188,223 180,210 190,466 
Effect of potentially dilutive securities:
Stock options59 1,478 754 1,380 
Restricted stock units2,092 3,118 1,893 2,558 
Employee stock purchase plan3 8 8 11 
Weighted-average common stock used in computing Non-GAAP net income per share—diluted175,393 192,827 182,865 194,415 
Non-GAAP net income per share—basic$0.19 $0.13 $0.55 $0.42 
Non-GAAP net income per share—diluted$0.19 $0.13 $0.54 $0.41 
Free Cash Flow
The following table presents a reconciliation of net cash provided by operating activities to free cash flow (unaudited):
Three months ended December 31,Twelve months ended December 31,
2024202320242023
(in thousands)
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
Net cash provided by operating activities42,586 22,495 135,639 124,308 
Purchase of property and equipment(6,707)(8,374)(35,696)(31,593)
Total free cash flow$35,879 $14,121 $99,943 $92,715 

v3.25.0.1
Cover
Feb. 26, 2025
Cover [Abstract]  
Document Type 8-K
Document Period End Date Feb. 26, 2025
Entity Registrant Name LegalZoom.com, Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 001-35618
Entity Tax Identification Number 95-4752856
Entity Address, Address Line One 954 Villa Street
Entity Address, Address Line Two
Entity Address, City or Town Mountain View
Entity Address, State or Province CA
Entity Address, Postal Zip Code 94041
City Area Code 323
Local Phone Number 962-8600
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $0.001 per share
Trading Symbol LZ
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0001286139
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